Wednesday, October 19, 2011
7:42:03 PM EDT

S&P 500 Index Appears Stuck

by
James Brown

The stock market is oscillating at the top of its trading range with the S&P 500 index unable to breakout past resistance in the 1225-1230 zone. There is a growing chance that stocks will merely churn sideways through the end of the week. October options expiration is this weekend. The bigger event is the EU summit on Greece this weekend. Traders may be unwilling to launch new bets ahead of the summit.

We are not adding any new trades tonight but I wanted to share what's on my watch list. Consider these trading ideas that need more research.
I would not hold over an earnings report and still need to look up earnings dates.

LLL - shares are poised to breakout over resistance at the $70.00 level.

COG - A rally past $71.00 might be a new bullish entry point. Be careful here. COG can be a very volatile stock.

CHRW - This transport stock is testing resistance at its simple 200-dma and the $75.00 level.

VAR - Shares are consolidating sideways under resistance near $57.75.

BWA - A breakout past its simple 200-dma could be a bullish entry point.

MCD - Watch for a rally past resistance at $91.00, which could signal a run towards $100.

GS - Shares failed near $105 and its 50-dma today. A breakout above this level could be used as a new bullish entry point.

THS - The correction in THS has been pretty mild so far. A close over $60.00 might be a new bullish entry point.

DLTR - This stock is consolidating sideways near all-time highs. A rally past $81.50 could be a new bullish entry point.

ENR - This stock displayed relative strength today and is currently trading above all of its significant moving averages.

SHLD - It looks like the rally might be getting tired. SHLD is trading near resistance at its mid July highs. Aggressive traders could speculate on a correction or use a drop under $72.50 as an entry point to buy puts.

CAT - A rally past $85.50 could be a new bullish entry point. Nimble traders could try buying a dip near $80.00 with a tight stop loss.

BCR - Shares have been underperforming in recent weakness but a breakout past resistance at $88.00 would also break a trend of lower highs.